Update shared on 15 Nov 2025
Fair value Decreased 3.50%The analyst fair value target for DSM-Firmenich has been lowered from €105.70 to €102.00. Analysts cite concerns about increased commoditization risks, competitive pressure, and adjustments to growth and profitability outlooks.
Analyst Commentary
Recent analyst activity around DSM-Firmenich reflects a range of perspectives on the company's outlook and market positioning. Below are the main bullish and bearish takeaways based on recent research updates and target price revisions.
Bullish Takeaways- Bullish analysts maintain Buy or Overweight ratings, highlighting confidence in DSM-Firmenich's long-term growth potential despite near-term headwinds.
- Some price targets, while lowered, remain well above current trading levels. This indicates that analysts see potential upside as the company executes its strategy.
- The company's diversified portfolio and leading position in consumer ingredients continue to be viewed positively by those with an optimistic outlook.
- Several analysts point to resilience in core business areas and ongoing innovation as supportive for medium-term valuation recovery.
- Bearish analysts cite mounting commoditization risks, particularly in the European consumer ingredients segment, as a key valuation concern.
- There is growing caution amid intense pricing pressure and increased competition from Chinese firms. These are seen as threats to margin stability.
- Frequent downward revisions of price targets reflect uncertainties around growth and profitability forecasts. Some analysts project limited near-term recovery.
- JPMorgan's recent underweight call and sharp price target reduction underscore investor apprehension regarding execution risks in the current environment.
What's in the News
- Citi reduced its price target on DSM-Firmenich shares to EUR 110 from EUR 127 and maintained a Buy rating on the stock (Citi).
Valuation Changes
- Fair Value Target has decreased from €105.70 to €102.00, reflecting a modest reduction in consensus valuation.
- Discount Rate has risen slightly from 6.06% to 6.07%, indicating a marginally higher perceived risk.
- Revenue Growth Forecast has edged down from 1.74% to 1.70%, suggesting slightly slower expected sales growth.
- Net Profit Margin Estimate has decreased marginally from 8.46% to 8.45%.
- Future P/E Ratio has fallen from 28.4x to 27.5x, which implies a lower anticipated earnings multiple.
Disclaimer
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